News / USA

Congressional Commission Sees China Falling Short on WTO Obligations

Congressional Commission Sees China Falling Short on WTO Obligations
Congressional Commission Sees China Falling Short on WTO Obligations

A U.S. congressional commission monitoring the impact of China on American security and economic interests says although the world's second-largest economy has made progress since joining the World Trade Organization nearly a decade ago, many challenges remain for American and other foreign companies seeking to do business there.

Next month, marks 10 years of China's entry into the World Trade Organization, and in many ways it is still failing to live up to its commitments.

"China has yet to create a system that effectively protects intellectual property; something that is required of all WTO members.  U.S. business software companies still report that China is the world’s largest source of pirated software.  Approximately eight of 10 computers in China still run counterfeit operating system software.  Even more disturbing, China has stepped backward from its original promise to lower trade barriers and to treat foreign products and services fairly," said William Reinsch, chairman of the U.S. China Economic and Security Review Commission.

In recent years, China has also been relying more on state owned enterprises and control of major sectors of the economy, limiting foreign access to its markets. "The government directs a vast array of subsidies to favored industries and seeks to nurture particular technologies behind protective barriers.  This is contrary to the spirit, and in many cases the letter, of China’s WTO commitments," Reinsch said.

Such shortcomings are significant because after this year China will no longer be obligated to respond to questions from members about its annual progress. When China joined the WTO in 2001, it agreed to annual reviews of its compliance in the first eight years and one final review this year.

On the security front, the commission notes there is growing evidence that Beijing sponsors or condones malicious cyber activities, which facilitate industrial espionage and target U.S. and other foreign government systems.

"When combined with the military’s excessive focus on other disruptive military capabilities, such as counter-space operations, it presents an image of Chinese intentions that diverges significantly from Beijing’s official policy of peaceful development," Reinsch said.

The commission also notes that as China continues its military buildup and an effort to modernize its forces with an average annual growth of 12 percent during the past decade, Beijing has recently achieved several military firsts.

"It flight tested its first stealth fighter, conducted a sea trial of its first aircraft carrier, and made progress towards deploying the world’s first anti-ship ballistic missile," Reinsch said.

Despite such security advances and continued challenges on the economic front, Reinsch says he believes the challenges U.S.-China relations face make relations difficult, but they are surmountable.

"I think we all have to be optimistic. The relationship is so important that we have to make it work.  And every American administration over the last seven and every Chinese administration over the last three or four have been, I think, determined to make it work and we get over these individual humps," Reinsch said.

But topping the list of its recommendations in the report, the commission has asked the president to assign the National Security Council to conduct a comprehensive agency-wide review of security and economic policies toward China, in an effort to assess where change is needed and address the serious challenges that remain.

You May Like

Katrina Brought Enduring Changes to New Orleans

The city’s recovery is the result of the people and culture the city is famous for, as well as newcomers and start-up industries More

China to Open Stock Markets to Pension Funds

In unprecedented move, government to soon allow local pension funds to invest up to $94 billion in domestic shares More

Magical Photo Slides Show Native Americans in Late 1800s

Walter McClintock spent 20 years photographing the Blackfoot Indians and their vanishing culture at the dawn of the modern age More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Colombians Flee Venezuela as Border Crisis Escalatesi
X
August 27, 2015 2:08 AM
Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Is China's Economic Data Accurate?

Some investors say China's wild stock market gyrations have been made worse by worries about the reliability of that nation's economic data. And some critics say the reports can mislead investors by painting an unrealistically-strong picture of the economy. A key China scholar says Beijing is not fudging ((manipulating)) the numbers, but that the economy is evolving quickly from smoke-stack industries to services, and the ways of tracking new economic activity are falling behind the change. V
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Shipping Containers Provide Experimental Housing

Housing prices around the San Francisco Bay area are out of reach for many people, so some young entrepreneurs, artists and tech industry workers are creating their own houses using converted shipping containers. But as VOA's Mike O’Sullivan reports from Oakland, the effort requires ingenuity and dealing with restrictive local laws.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video Technique May Eliminate Drill-and-Fill Dental Care

Many people dread visiting dentists because they're afraid of drills. Now, however, a technology developed by a British firm promises to eliminate the need for mechanical cleaning of dental cavities by speeding a natural process of tooth repair. VOA’s George Putic reports.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.
Video

Video French Experiment in Integrating Roma Under Threat

Plans to destroy France’s oldest slum have sparked an outcry on the part of its Roma residents. As Lisa Bryant reports from the Paris suburb of La Courneuve, rights groups argue the community is a fledgling experiment on integrating Roma who are often outcasts in many parts of Europe.
Video

Video Kenyans Turn to Agriculture for Business

Each year Kenyan universities continue to churn out graduates for the job market despite the already existing high rate of unemployment among youth in the country. Some of these young men and women have realized that agriculture can be as rewarding as any other business or job, and they are resorting to agribusiness in large numbers as a way of tackling unemployment. Rael Ombuor reports for VOA.
Video

Video First Women Graduate Elite Army Ranger School

Two women are making history for the U.S. Army by proving they are among the toughest of the tough. VOA's Carla Babb reports from Fort Benning, Georgia as 94 men and those two women rise as graduates of the difficult Ranger school.

VOA Blogs